Great question!!
First, I want to give you some of my favorite Self Employment links. You might find these helpful.
Self employment tax
Self employment tax hub with calculator
Self Employment income and expenses
If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040 or 1040-SR. But in some situations your loss is limited. See Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C) for more information.
Here is a copy of that publication:
https://www.irs.gov/pub/irs-pdf/p334.pdf
You can have a loss 3 out of 5 years. If you have a loss more than that, then your business might be considered a hobby. FYI
Thanks for the great question!!
Katie S
Katherine S 63
